The scandal worsened this week when the company admitted 800,000 European cars may have cheated carbon dioxide tests, including nearly 100,000 petrol cars for the first time. Lawyers warned this could lead to claims for higher fuel and tax bills.

Volkswagen wasn’t alone in suffering a big drop in sales as the market posted its first decline since early 2012.

Vauxhall sales were down by 16.4%, Nissan by 12.9% and Mitsubishi by 11.9%.

But year to date figures for the UK industry are up by 6.4% compared to this time in 2014.

SMMT chief executive, Mike Hawes, said: “The UK car market has gone through a period of unprecedented growth and, so far, 2015 has been a bumper year with the strongest performance since the recession.

“As expected, demand has now begun to level off but the sector is in a strong position, as low interest rates, consumer confidence and exciting new products combine to attract new car buyers. The current full-year growth forecast remains on track.”